In 2025, Nigerian farmers tapped into agricultural credit schemes totaling N3.4 trillion, the federal government has revealed, as part of ongoing efforts to boost food production and strengthen the country’s agricultural sector. While the figure is significant, officials note that it represents less than 4% of agriculture’s contribution to Nigeria’s GDP, highlighting the gap between available financing and the sector’s full potential.
Minister of Agriculture and Food Security, Abubakar Kyari, emphasized that access to finance remains a major obstacle for farmers nationwide, limiting productivity and growth. Speaking at the Nigeria–United Kingdom Investment Forum in London, Kyari urged investors, financial institutions, and development partners to collaborate with Nigeria to build resilient and climate-smart food systems.
Nigeria’s agricultural potential is vast, according to the minister, with its diverse agro-ecological zones supporting competitive production of crops such as rice, maize, cassava, cocoa, sesame, sorghum, and horticultural commodities. He pointed out that agriculture employs nearly 70% of Nigeria’s labour force and contributes over 24% to GDP, making it a critical driver of rural livelihoods, youth employment, and inclusive economic growth.
However, the sector faces increasing pressure from climate change. Nigeria has experienced prolonged droughts, erratic rainfall, flooding, and desertification, all of which threaten productivity and food security. The minister noted that bridging the financing gap is essential to deploy climate-smart technologies, scale innovations across value chains, and transition to more sustainable farming methods.
To address these challenges, the government has implemented several initiatives, including distributing solar-powered irrigation pumps to smallholder farmers to enable all-season farming. Additionally, a national state of emergency on food security was declared in July 2023, and the Presidential Food Systems Coordinating Unit was inaugurated to coordinate interventions across federal, state, and local governments, aiming to unlock Nigeria’s full agricultural potential.
source: The sun